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Strategies & Market Trends : Income Taxes and Record Keeping ( tax ) -- Ignore unavailable to you. Want to Upgrade?

To: Box-By-The-Riviera™ who wrote (421)	1/8/1998 8:56:00 PM
From: Colin Cody	Read Replies (1) \| Respond to of 5810

The problem isn't that a taxpayer can or can not switch year to year from INVESTOR to TRADER and back again. Yes that IS "allowed". The facts and circumstances determine EACH YEAR if you are in a trade or business. . The issue, IMO, is if a taxpayer switches back and forth he is opening himself up for a challenge by the IRS. Obviously by his OWN ADMISSIONS the taxpayer is NOT devoting a full and consciencious effort into this so-called business he is in only from time to time. He'd better have BULLET-PROOF documentation to show why he is a TRADER one year and an INVESTOR the next - and even then the audit could be a tough one, IMO. . Colin